LEWISTON, Idaho, Oct. 23 /PRNewswire/ --
FirstBank NW Corp. (Nasdaq: FBNW), the holding company for FirstBank
Northwest, today reported solid growth as net income improved 11% to
$593,000, or $.43 per diluted share, in its second fiscal quarter ended
September 30, 2001, compared to $533,000, or $.37 per diluted share, in the
like quarter of a year ago. Total assets grew 11.5% to $291 million, compared
to $261 million last year.
FirstBank also announced its Board of Directors has declared a regular
quarterly cash dividend of $.12 per common share. The dividend will be paid
November 30, 2001 to shareholders of record at November 15. This marks the
17th regular quarterly cash dividend since FirstBank's conversion to the stock
form of ownership in July 1997.
"Net income continues to benefit from reduced interest expense and
improved non-interest income. Gain on sale of loans is up 86%, from
$449,000 to $835,000 for the six month periods ending September 30, 2000
versus September 30, 2001, respectively," said Clyde E. Conklin, President and
Chief Executive Officer. Non-interest income was $2,000,000 for the first six
months of fiscal year 2002 compared to $1,278,000 in the like period a year
ago.
"The declining interest rate environment and steepening yield curve
improved net interest income from $2.2 million for three months ending
September 30, 2000 to $2.4 million for three months ending
September 30, 2001," said Conklin. "The net interest margin improved to 3.94%
on September 30, 2001 compared to 3.83% on September 30, 2000".
Loans grew 8.6% to $215.8 million on September 30, 2001 from
$198.8 million on September 30, 2000. "It is anticipated that loan growth
will slow as the economy continues to slow," said Conklin. "We continue to
look for appropriately priced loan assets that meet our credit and interest
rate risk policies. "
"Commercial and agricultural loans now represent 47% of the total
portfolio as compared to 43% last year," said Larry K. Moxley, Executive Vice
President and Chief Financial Officer. "Based on the loan portfolio growth,
portfolio diversification, and the continued deterioration of the economy, we
considered it prudent to increase reserve allowances accordingly." Moxley
went on to note that, "We have increased allowances for loan losses from
$1.8 million, or .80% of net loans as of March 31, 2001, to $2.1 million, or
.97% of net loans as of September 30, 2001. We maintain that increased
allowances are appropriate and timely," said Moxley. "We have experienced a
slight increase in non-performing assets to $1.6 million, or .54% of total
assets as of September 30, 2001, compared to $1.5 million, or .53% of total
assets as of March 31, 2001," Moxley continued.
Non-interest, or operating expense, increased to $2.5 million for the
quarter, compared to $2.1 million a year ago. FirstBank's efficiency ratio
improved to 68.4% in its second fiscal quarter, compared to 70.73% for the
like quarter a year ago.
"Since July 1998, we have completed stock repurchases totaling 26% or
512,558 of FBNW shares, of which 4% have been reissued to fund employee stock
benefit plans, for a net repurchase of 22%," said Conklin. "The Board of
Directors authorized the repurchase of 153,000 shares on May 17, 2001, which
is currently underway."
FirstBank NW Corp. is the parent of FirstBank Northwest. Founded in 1920,
FirstBank Northwest is based in Lewiston, Idaho, and is known as the local
community bank, offering its customers highly personalized service in the many
communities it serves. At closing yesterday, FBNW shares traded at $17.20 per
share, or 85% of book value.
Statements concerning future performance, developments or events,
concerning expectations regarding expansion opportunities, technology
efficiencies, new products and services, and any other guidance on future
periods, constitute forward-looking statements which are subject to a number
of risks and uncertainties including interest rate fluctuations, regional
economic conditions, competitive factors, and government and regulatory
actions that might cause actual results to differ materially from stated
expectations.
FIRSTBANK NW CORP
FINANCIAL HIGHLIGHTS
(unaudited) (in thousands except share and per share data)
Three Months Ended Six Months Ended
September 30, September 30,
2001 2000 2001 2000
Interest Income $5,222 $5,213 $10,499 $10,063
Interest Expense 2,673 2,944 5,462 5,619
Provision for Loan Losses 185 32 414 134
Net Interest Income
After Provision for
Loan Losses 2,364 2,237 4,623 4,310
Non-Interest Income
Gain on sale of loans 482 276 835 449
Gain on sale of
securities, net 0 0 175 0
Mortgage Servicing Fees 60 60 117 124
Service fees and charges 425 343 808 649
Commission and other 24 30 65 56
Total Non-Interest Income 991 709 2,000 1,278
Non-Interest Expenses
Compensation and Related
Expenses 1,462 1,233 2,907 2,435
Occupancy 310 290 617 621
Other 711 583 1,338 1,183
Total Non-Interest Expense 2,483 2,106 4,862 4,239
Income Tax Expense 279 307 587 421
Net Income $593 $533 $1,174 $928
Basic Earnings per Share $0.44 $0.38 $0.86 $0.66
Diluted Earnings per Share $0.43 $0.37 $0.82 $0.63
Proforma Basic Cash
Earnings per Share (A) $0.46 $0.41 $0.91 $0.71
Proforma Diluted Cash
Earnings per Share (A) $0.45 $0.39 $0.87 $0.68
Weighted Average Shares
Outstanding - Basic 1,356,792 1,395,559 1,372,325 1,415,310
Weighted Average Shares
Outstanding - Diluted 1,397,308 1,446,947 1,427,458 1,470,862
Actual Shares
Outstanding 1,471,192 1,546,953 1,471,192 1,546,953
September 30 March 31 September 30,
2001 2001 2000
Total Assets $291,182 $281,062 $260,855
Cash and Cash Equivalents $27,262 $12,805 $13,324
Loans Receivable, net $215,820 $219,151 $198,768
Mortgage-Backed Securities $13,592 $20,039 $20,086
Investment Securities $12,595 $12,568 $11,848
Stock in FHLB, at cost $5,210 $5,032 $4,563
Deposits $180,794 $157,797 $150,820
FHLB Advances & Other
Borrowings $78,551 $90,917 $80,824
Stockholders' Equity $27,770 $27,976 $26,023
Book Value per Share (B) $20.23 $19.39 $18.14
FASB 115 Adjustment after Taxes $568 $600 ($430)
Equity/ Total Assets 9.54% 9.95% 9.98%
Tier 1 Capital to Average
Assets 8.78% 9.18% 9.32%
Risk-based Capital to
Risk-Weighted Assets 13.82% 14.45% 14.04%
Number of full-time
equivalent Employees 116 113 112
(A) Cash earnings per share exclude management recognition and development
plan expense that will continue until September of 2003.
(B) Calculation is based on number of shares outstanding at the end of the
period rather than weighted average shares outstanding and excludes
unallocated shares in the employee stock ownership plan (ESOP)
9/01 - 98,498 shares, 3/01 - 104,225 shares, 9/00 - 112,683 shares.
FINANCIAL STATISTICS
(ratios annualized)
Three Months Ended Fiscal Six Months Ended
September 30, Year Ended September 30,
2001 2000 March 31, 2001 2001 2000
Return on Average
Assets 0.83% 0.81% 0.71% 0.83% 0.72%
Return on Average
Equity 8.46% 8.20% 7.07% 8.37% 7.13%
Average Equity/Average
Assets 9.76% 9.89% 10.00% 9.88% 10.06%
Average Equity/Average
Loans 12.51% 12.89% 13.01% 12.58% 13.13%
Efficiency Ratio (C) 68.40% 70.73% 72.64% 67.31% 74.09%
Operating
Expenses/Average
Assets 3.46% 3.20% 3.27% 3.42% 3.27%
Net Interest Margin 3.95% 3.84% 3.83% 3.94% 3.83%
Interest Earning
Assets/Interest
Bearing Liabilities 104.78% 104.53% 104.52% 105.38% 104.24%
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2001 2001 2000
LOANS
(unaudited)(in thousands except share and per share data)
LOAN ORIGINATIONS (D):
Residential loan centers $61,959 $70,175 $34,984
Consumer loan centers 8,994 17,287 9,563
Agricultural loan centers 7,113 22,011 7,662
Commercial loan centers 24,804 58,933 23,910
Total Loan Origination $102,870 $168,406 $76,119
LOAN PORTFOLIO ANALYSIS:
Real estate loans:
Residential $74,087 $74,892 $72,444
Construction 9,007 8,028 8,567
Agricultural 16,395 15,383 16,113
Commercial 44,897 37,969 29,557
Total real estate loans 144,386 136,272 126,681
Consumer and other loans:
Home equity 26,173 27,323 26,708
Agricultural operating 10,472 10,938 10,884
Commercial 32,523 41,789 31,885
Other consumer 8,277 8,255 8,566
Total consumer and
other loans 77,445 88,305 78,043
Total Loans Receivable $221,831 $224,577 $204,724
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2001 2001 2000
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $1,758 $1,604 $1,604
Provision for Loan Losses 414 303 134
Charge offs (Net of Recoveries) 82 149 120
Balance at End of Period $2,090 $1,758 $1,618
Loan Loss Allowance/Net Loans 0.97% 0.80% 0.81%
Loan Loss Allowance/
Non-Performing Loans 140.08% 121.83% 147.36%
(C) Calculation is non-interest expense divided by tax equivalent
non-interest income and net interest income.
(D) Loan originations are based upon new production.
NON-PERFORMING ASSETS:
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2001 2001 2000
Accruing Loans - 90 Days Past Due $0 $282 $0
Non-accrual Loans 1,492 1,161 1,098
Total Non-performing Loans 1,492 1,443 1,098
Restructured Loans on Accrual 0 0 196
Real Estate Owned (REO) 72 33 26
Total Non-performing Assets $1,564 $1,476 $1,320
Total Non-performing
Assets/Total Assets 0.54% 0.53% 0.51%
Loan and REO Loss Allowance
as a % of Non-Performing Assets 133.63% 119.11% 122.58%
AVERAGE BALANCES, INTEREST AVERAGE YIELDS/COSTS
Six Months Year Six Months
Ended Ended Ended
Sept. 30, March 31, Sept. 30,
2001 2001 2000
Average Interest Earning Assets:
Average Loans receivable:
Average Mortgage Loans receivable $74,958 $72,629 $73,029
Average Commercial Loans receivable 80,759 66,492 60,037
Average Construction Loans receivable 6,183 5,485 5,018
Average Consumer Loans receivable 35,639 34,677 33,946
Average Agricultural Loans receivable 27,902 27,258 28,351
Average unearned loan fees
and discounts, allowance
for loan losses, and other (2,406) (2,095) (2,022)
Total Average Loans receivable, net 223,035 204,446 198,359
Average Mortgage-backed securities 15,654 20,279 20,555
Average Investment securities 12,452 11,901 11,577
Average Other earning assets 14,195 11,479 10,466
Total Average Interest Earning Assets 265,336 248,105 240,957
Average Non-Interest Earning Assets 18,737 17,802 17,701
Total Average Assets $284,073 $265,907 $258,658
Average Interest Bearing Liabilities:
Average Passbook, NOW,
and money market accounts $68,493 $63,486 $64,532
Average Certificate of deposits 93,683 83,670 79,062
Average Advances from FHLB and other 89,621 88,747 87,570
Total Average
Interest Bearing Liabilities 251,797 235,903 231,164
Average Non-Interest
Bearing Liabilities 4,210 3,408 1,447
Total Average Liabilities 256,007 239,311 232,611
Total Average Equity 28,066 26,596 26,047
Total Average Liabilities and Equity $284,073 $265,907 $25,658
Interest Rate Yield on Earning Assets 8.05% 8.51% 8.50%
Interest Rate Expense
on Interest Bearing Liabilities 4.33% 4.92% 4.86%
Interest Rate Spread 3.72% 3.59% 3.64%
Net Interest Margin 3.94% 3.83% 3.83%
SOURCE FirstBank NW Corp.
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